________ serves as the basis for the financial metric known as return on equity.
A)Owner's equity
B)Customer's equity
C)Brand equity
D)Value equity
E)Retention equity

Question

Quizplus · Accepted Answer

Return on equity is a financial metric that measures how much profit a company generates with the money invested by its shareholders. The numerator of this ratio is the company's net income, and the denominator is the average owner's equity. Therefore, owner's equity serves as the basis for calculating return on equity. Customer's equity, brand equity, value equity, and retention equity are not directly related to this financial metric.

________ Serves as the Basis for the Financial Metric Known